Recently, the global cryptocurrency market has experienced a significant downturn, with the price of Bitcoin dropping from its peak to nearly $60,000, attracting widespread attention in the market. The primary cause of this decline is attributed to an unexpected increase in the supply of Bitcoin. A combination of key events, such as the release of approximately 28,000 bitcoins by the US government, the allocation of 33,960 bitcoins in the Mt Gox settlement agreement, and the $1.5 billion worth of bitcoins and ether obtained by Genesis creditors, collectively exerted immense downward pressure on the market. Apart from the surge in supply, the significant increase in mining difficulty also had negative effects on the market. Mining difficulty levels reached an all-time high, soaring to 10.5%, which posed additional challenges for miners, compelling them to liquidate assets. Meanwhile, macroeconomic factors exacerbated the bearish sentiment in the market. With a high unemployment rate of 4.3% and concerns about an impending economic recession, investors became more cautious, further driving down the price of Bitcoin.